The following information is available for the Fling Company: $$\begin{array} { l r }
\text { Sales } & \$ 350,000 \
\text { Invested capital } & 156,250 \
\text { ROI } & 10 \%
\end{array}$$ The capital turnover ratio is _____.
A)2.240
B)0.100
C)0.625
D)none of these answers is correct

Question

The following information is available for the Fling Company: $$\begin{array} { l r } 
\text { Sales } & \$ 350,000 \
\text { Invested capital } & 156,250 \
\text { ROI } & 10 \%
\end{array}$$ The capital turnover ratio is _____.
A)2.240
B)0.100
C)0.625
D)none of these answers is correct

Quizplus · Accepted Answer

The capital turnover ratio is calculated by dividing sales by invested capital. For Fling Company, this is $350,000 / $156,250 = 2.24.

The Following Information Is Available for the Fling Company Sales $350,000 Invested capital 156,250 ROI 10%\begin{array} { l r } \text { Sales } & \$ 350,000 \\\text { Invested capital } & 156,250 \\\text { ROI } & 10 \%\end{array} Sales Invested capital ROI ​$350,000156,25010%​

The Following Information Is Available for the Fling Company $\begin{array} { l r } \text { Sales } & \$ 350,000 \\\text { Invested capital } & 156,250 \\\text { ROI } & 10 \%\end{array}$